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CC - Item 2A - Annual Funding Plan Community Development Block Grant• TO: HONORABLE MAYOR AND MEMBERS ROSEM D CITY COUNCIL FROM: BILL C OWE, CITY MANAGER DATE: JUNE 6, 2005 0 RE: PUBLIC HEARING REGARDING ADOPTION OF THE ANNUAL FUNDING PLAN FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND HOME PROGRAMS Since FY 1994-1995, the City of Rosemead has participated in the federal CDBG program as a direct entitlement city. In FY 1996-1997, the City became an entitlement entity for the HOME program as well. In order to receive the new allocation and expend the balance of the prior year's, the City must comply with the following requirements regarding submission: 1. Fulfill citizen participation requirements by conducting a public hearing to receive citizen input regarding projected use of funds and adopt the budget. Public hearing was held on April 12, 2005. 2. Publish the draft Consolidated Plan and Annual Funding Plan (including Citizen Participation Plan) for 30-day comment period in order to receive citizen input regarding the final document. The Plan was published April 26, 2005. 3. Hold a second public hearing to receive citizen input regarding the Consolidated Plan. Public hearing to be held June 14, 2005. 4. Submit to HUD. COUNCIL AGE DA JUN 14 2005 ITEM fir,). Consolidated Plan Adoption. 2 • During the 30-day comment period, the City received no public comments. For your review and approval is the attached Consolidated Plan and 2005-2006 Annual Funding Plan. Any comments received prior to the Council meeting will be made available to the Council before the meeting. RECOMMENDATION Staff recommends that after receiving public input, discussion and after any changes, that the City Council: 1. Approve submission of the Consolidated Plan and Annual Funding Plan; and 2. Authorize the City Manager to execute all appropriate documents and certifications and submit to HUD. • • 2005-2010 Consolidated Plan and Annual Funding Plan FY 2005-2006 City of Rosemead Community Development Block Grant HOME Program • • TABLE OF CONTENTS TABLE OF CONTENTS ..........1 INTRODUCTION ..........3 GENERAL ..........3 Managing the Process ..........3 Lead Agency 3 Planning Process 4 Consultation ..........4 Citizen Participation ..........4 Institutional Structure ..........5 Strengths and Gaps in Delivery System ..........5 Coordination Monitoring Anti-Displacement and Relocation Assistance Plan ..........8 STRATEGIC PLAN ..........9 Community Description 9 Basis for Allocating Investment 9 Obstacles to Meeting Underserved Needs 9 Five-Year Priority Needs and Strategies ..........9 Basis for Assigning Priority Needs - Geographic Distribution 9 Housing 10 Housing Analysis ........13 Affordability ........17 Barriers to Affordable Housing ........18 Disproportionate Need and Underserved Populations ........18 Housing Needs and Priorities ........18 Strategic Plan ........19 High Priority Housing Needs ........19 Lead Based Paint ........20 Lead Based Paint Strategy 20 Public Housing Needs and Strategy 21 Homelessness ........21 Continuum of Care 21 Gaps Analysis 22 Certifications of Consistency with the Consolidated Plan ........23 Priorities to Address Homelessness ........24 Homeless Strategic Plan 25 Special Needs Populations 25 Community Development .........26 Community Development Needs and Bases for Assigning Priorities 26 Obstacles to Meeting Needs 26 Non-Homeless Special Needs and Priorities .........28 Public Services 28 ADA Improvements 28 Community Development Strategic Plan 28 0 0 Anti-Poverty Strategy ..............29 Low Income Housing Tax Credit Coordination ..............30 Fair Housing 3 Introduction 30 Definition of Fair Housing 30 Impediments to Fair Housing Choice 30 Results of Analysis of Impediments (Al) 31 Rental Housing ..............31 Home Ownership ..............31 Fair Housing Strategy 32 Other Requirements 3 2 CDBG 32 HOME 32 ANNUAL ACTION PLAN: FY 2005-2006 ..............34 Introduction 4 General 34 Geographic Areas of Jurisdiction 34 Basis for Allocating Investment for FY 2005-2006 34 Geographic Distribution 34 Actions to address obstacles to meeting underserved needs ..............34 Managing the Process ..............35 Lead Agency 35 Consultation 35 Institutional Structure ..............35 Citizen Participation ..............36 Monitoring ..............36 Housing 36 Specific Housing Objectives 36 Resources 37 Needs of Public Housing 37 Barriers to Affordable Housing 37 HOM&American Dream Down Payment Initiative (ADDI) ..............37 Homeless Prevention and Assistance ..............38 Resources 38 Community Development ..............39 Community Development Activities 39 Resources 39 Anti-Poverty Strategy ..............39 Non-Homeless Special Needs ..............40 Resources 40 Fair Housing ..............40 FY 2005-2006 Activities 40 CDBG and HOME Work Plan and Budget FY 2005-2006 ..............41 2005-2010 Consolidated Plan, City of Rosemead 2 0 0 INTRODUCTION The City of Rosemead's 2005 Consolidated Plan coordinates all elements of community development including housing, neighborhood development and human services into a single plan and application for federal funds through the following entitlement programs: Community Development Block Grant (CDBG) and HOME Investment Partnerships Program. The Consolidated Plan states the City's plan to pursue the overall goals of the community development and planning programs of the Department of Housing and Urban Development (HUD). Those goals are: • To provide decent housing; • To establish and maintain a suitable living environment; and • To expand economic development opportunities primarily for persons of low-to- moderate income The Consolidated Plan serves the following functions: • A planning document for the City, based on a participatory process; • An application for federal funds • A strategy for carrying out programs; and • An action plan that provides a basis for assessing performance The Plan is organized into the following sections: General, which describes the process, lead agency, and citizen participation; Strategic Plan, which describes the market conditions, housing needs, homeless needs and strategies and other community development needs and strategies; and the One Year Action Plan, which describes the actions the City plans to undertake in FY 2005-2006 after receipt of federal funds. GENERAL Managing the Process Lead Agency The City of Rosemead has organized Community Development to be responsible for the planning, development and implementation of its Community Development Block Grant (CDBG) and HOME programs. 2005-2010 Consolidated Plan, City of Rosemead 3 • • Community Development administers the City's CDBG and HOME funds, as well as Redevelopment Commercial Rehabilitation funds and a Department of Justice Grant. These funds collectively provide the following programs: the Residential Rehabilitation Program, the Commercial Rehabilitation and Economic Development Loan Programs, the HOME Development Program, the Public Service Agency Program and the Mortgage Assistance Program and the CDBG Capital Improvement Plan Program. Funds are also used for specific community development projects targeting ADA improvements, lead testing and remediation, assistance to the homeless and to battered women. Planning Process The City has worked with residents, non-profit organizations and others to develop its long-term strategy, as outlined in the Consolidated Plan and One Year Action Plan. Consultation The City consulted with the City's Housing Authority and surrounding cities were invited to comment on the draft Plan, including South El Monte, El Monte, Monterey Park, West Covina, Temple City, Montebello, San Gabriel and the County of Los Angeles. In addition, the City consulted with the City's departments and divisions and with non-profit organizations, such as People for People, YWCA-Wings, the Rosemead School District, Boys and Girls Club, Housing Rights Center, L.A. County Public Health Department, the Los Angeles Homeless Services Authority, the San Gabriel Valley Homeless Coalition and others. Citizen Participation The City updated its Citizen Participation Plan in conjunction with the Consolidated Plan process and held the citizen participation process in accordance with the Plan. A public notice of funding availability and acceptance of applications for CDBG and HOME funding was published in the San Gabriel Valley Tribune on January 26, 2005. A Request for Proposals was mailed to all interested parties. The City also held a joint Consolidated Plan and Disaster Management Plan public meeting for residents on March 10, 2005. A public hearing regarding needs was held on April 12, 2005. The City published its draft Plan for a 30-day comment period on April 26, 2005 and held its adoption hearing on June 14, 2005. Public Comments As of June 13, 2005, the City did not receive any public or written comments. 2005-2010 Consolidated Plan, City of Rosemead 4 • State • A copy of the City's Annual Funding Plan was sent to the State of California. Institutional Structure Strengths and Gaps in Delivery System As a strength, the City of Rosemead has integrated several required programs and plans with its approved Consolidated Plan to ensure that all aspects of City government and related agencies, including the Los Angeles County Housing Authority work together on a uniform vision for the benefit of the residents of the City. Staff from Community Development engaged in a joint process with the City's Planning Department as part of the 2000-2005 update of the City's Housing Element required by the State of California. The Housing Element incorporates the City's Consolidated Plan programming and goals into its overall document. In addition, the Housing Element identifies the City's financial resources including federal funds for housing activities and gives quantified objectives using those resources to address its regional housing needs of very-low-, low- and moderate-income households. The CDBG and HOME work programs reflect goals and objectives that are contained in other City plans. Some of these plans and programs are as follows: The Redevelopment Agency Five Year Implementation Plan, the Housing Element and the City's Capital Improvement Plan. These plans have been created with input from the public, other City departments and divisions, the State's Housing and Community Development Division, CalTrans, and other public agencies and non-profit entities. Potential gaps in institutional structure that will be approached over the next five (5) year planning period include the following: Look for additional ways, outside of traditional development, to develop land and engage in regional housing strategies; Identify the need for housing and/or service resources available for persons whose needs may not be met within the current program framework; • Look for additional revenue and work with the government to ensure that current revenue remains available to meet needs. Coordination The City continues to focus on improving coordination. The City continues its liaison with the County and has worked to promote projects between Community Development 2005-2010 Consolidated Plan. City of Rosemead 5 0 and the City's Redevelopment Agency. District in the past and is reaching coordination issues as part of an ongoing Monitoring 0 The City has funded the Rosemead School out to additional school districts regarding process. Programs administered and monitored by the City include the following- 0 CDBG ■ HOME Performance of planned projects and activities for these funds are monitored in various ways depending on type of program and reporting requirements. Monitoring is viewed as a way to identify deficiencies and promote corrections in order to improve performance. The actual activity of monitoring helps promote quality performance, as well as identify any need for further technical assistance. The following is a description of the types of monitoring performed by staff: ■ Performance monitoring ■ Financial monitoring ■ Davis-Bacon Compliance ■ Environmental Review Compliance ■ Other Areas of Compliance The City operates in accordance with the monitoring plan developed for CDBG and HOME programs, including an annual single audit in conformance with OMB Circular 133-A. The Grants Coordinator and Assistant Grants Coordinator, monitor all activities of the program on a monthly basis. Community Development and Finance monitoring financial performance jointly. Performance Monitoring Monitoring activities includes spot check monitoring of subrecipients which occurs at the time of invoice receipt and includes a review of reporting information to ensure compliance with the HUD requirement that beneficiaries be low-income and comprehensive monitoring to include on-site visits, interviews, telephone contacts and reports. Subrecipients Agreements are used to measure compliance by grant recipients. Financial Monitoring All project costs are paid on a reimbursement basis. A request for reimbursement must have appropriate documentation attached to verify all expenditures. A current report of 2005-2010 Consolidated Plan. City of Rosemead 6 • • program activities must also be attached to the draw down request. Expenditures are not paid in advance. The combination of data from the request and the program activities report provides the information necessary to input data into the IDIS system. Collecting this data during the program year is helpful in compiling reports. By requiring documentation in association with reimbursement, the City is able to closely monitor program requirements and ensure that program goals are being met. Davis-Bacon Compliance When using federal funds for construction projects, the City must ensure that workers are paid prevailing wage rates. This requirement applies to all non-residential construction contracts in excess of $2,000. Davis-Bacon regulations require contractors and subcontractors to pay a certain wage to employees in various labor classifications. These regulations are a requirement of CDBG and HOME program Subrecipient Agreements. All applicable CDBG and HOME program projects are monitored based on their conformance with Davis-Bacon requirements. In both the CDBG and HOME programs, there are separate rules about when Davis-Bacon applies to construction of housing. In the HOME program, Davis-Bacon applies to projects with 12 or more HOME assisted units versus CDBG, which applies to eight (8) or more units in the project. City staff checks with the State Board to ensure that contractors selected are licensed, and also checks that the proposed contractor is not on HUD's debarred list. Once a contractor is selected through a bidding process, the contractor signs a contract. Staff conducts a pre-construction conference, reviews contractor and subcontractor payrolls, and makes site visits and interviews contractor/ subcontractor employees. The provisions of Davis Bacon are explained in the specifications document and in the pre- construction meeting. During construction, employees are interviewed and interview forms are compared with appropriate payrolls to ensure that hours and pay are correct and files are maintained regarding results. Site visits give staff the visual perspective of project progress and confirm reported performance and supplement written reports. Site visits are made to see how services are delivered to clients, provide technical assistance and inspect progress of construction projects. Reporting/Tracking Systems Performance is tracked and reported as stated above. The labor compliance officers review the reports, and any discrepancies are addressed with the appropriate entities. Records on performance are kept in the project file. Accuracy of data is confirmed by site visits and monitoring. 2005-2010 Consolidated Plan, City of Rosemead 7 0 • Environmental Review Compliance Each project that is budgeted is first reviewed for compliance with the NEPA (National Environmental Protection Agency regulations). CEQA (California Environmental Quality Act) regulations may also apply. Projects that are community service in nature are exempt from NEPA. Projects that require further investigation are researched using input from Environmental Regulatory Agencies. For projects that fall in this category, a description of the project is sent to the State Office of Historic Preservation and to other applicable regulatory agencies for consultation as may be applicable. Once required consultations have been completed and any mitigation measures identified, the City prepares the appropriate paperwork, including the Statutory Worksheet and publishes a combined NOI/RROF and/or Findings regarding impacts (if the project is an Environmental Assessment). Once environmental clearance has been obtained, the project can move forward to City Council and/or bid, etc. as appropriate. The Grants Coordinator monitors all Environmental Reviews. Other Areas of Compliance Other areas of compliance include fair housing, minority and women business enterprises, Section 3 requirements, housing quality standards, affirmative marketing, project eligibility and other quantified objectives such as affordability and maximum per unit subsidy assistance. These requirements are monitored as part of annual monitoring process and are included in subrecipient agreements for both HOME and the CDBG programs. Anti-Displacement and Relocation Assistance Plan The City of Rosemead does not intend to undertake any activities in which any occupied lower income housing or any business is demolished or converted to another use. If the City would undertake such an activity with funds provided under the CDBG or HOME program, the City would follow the federal regulations under 24 CFR 570.496a(c)(1) and 24 CFR 570.606(c)(1) regarding relocation and replacement of housing. 2005-2010 Consolidated Plan, City of Rosemead 8 0 0 STRATEGIC PLAN Community Description The City of Rosemead is located in the San Gabriel Valley in the eastern portion of Los Angeles County_ Rosemead was incorporated as a City in 1959. The City enjoys good access to major transportation corridors including the Interstate 10, Interstate 605, Rosemead Boulevard, Mission Drive, Temple City Boulevard, Valley Boulevard and Walnut Grove Avenue. Rosemead is a predominantly built-out suburban community and serves as a residential suburb for surrounding employment centers, such as Los Angeles. Most of the land area has been developed as low-density housing. Basis for Allocating Investment Based on HUD recommendations, general relative priorities for funding will be as follows: HIGH PRIORITY.- Activities to address this need will be funded during the five-year period. MEDIUM PRIORITY: If funds are available, activities to address this need may be funded by the City during the five-year period. Also, the City may use other sources of funds and take actions to locate other sources of funds. LOW PRIORITY: It is not likely the City will fund activities to address this need during the five-year period. The City will consider certifications of consistency for other entities' applications for assistance. Obstacles to Meeting Underserved Needs Potential obstacles to meeting needs and underserved needs are as follows: • Lack of land and/or affordable land • Funding constraints • Potential elimination of funding for CDBG and other funding sources by the federal government in FY 2006 Five-Year Priority Needs and Strategies Basis for Assigning Priority Needs - Geographic Distribution CDBG and HOME dollars will be spent in the areas of homeownership, housing rehabilitation and public services without regard for geographic boundaries, but focusing on low-to-moderate income households in the area south of Interstate 10. Infrastructure 2005-2010 Consolidated Plan, City of Rosemead 9 • 0 activities will be undertaken in low-to-moderate income areas, primarily in areas south of Interstate 10. Housing Housing Market Analysis Population, Race and Ethnicity The population of Rosemead in the 2000 Census was 53,505 persons. In 1980, the City had a population of 42,604 people. By 1990, that figure had grown to 51,638, an increase of 17.5%. The 2000 population represents an increase of 3.5% over 1990 figures. Table 1 (U.S. Census) 1960 1970 1980 1990 2000 15,476 40,972 42,604 51,638 53.,505 Over time, the ethnic distribution of the City has also changed. In the 2000 Census, 48.8% of the population is Asian, with 41.3% of the population (regardless of race) reporting as Hispanic. The following chart compares race and ethnicity data between 1990 and 2000: Table 2 1990 2000 Number % Total Population 51,638 100 53,505 100 White 8,282 16 14,217 26.6 Black 146 .03 363 .7 Hispanic (all races) 25,463 49 22,097 41.3 Native American 142 03 456 .9 Asian 17,424 34 26,090 48.8 Native Hawaiian Other Pacific Islander 34 .1 Other 181 .4 10,535 19.7 Two or more races 1,810 3.4 Source: 1990 and 2000 Census. Totals do not add up because of multiple race and ethnicity data 2005-2010 Consolidated Plan, City of Rosemead 10 • 0 There are 13,930 households in the City. Income of those households has also changed over the last 10 years although its percentage comparison to Los Angeles County remains the same. Incomes were as follows: Table 3 Household Income, 2000 Income Range # Of Households % Of Households Under $10,000 1,300 9.3 $10,000 - 14,999 1,068 7.7 15,000 - 19,999 1,106 7.9 20,000 - 24,999 1,321 9.5 25,000 - 29,999 960 6.9 30,000 -34,999 927 6.7 35,000 -39,999 886 6.4 40,000 - 44,999 870 6.3 45,000 - 49,999 646 4.6 50,000 - 59,999 1,252 9 60,000 - 74,999 1,388 10 75,000 - 99,999 1,186 8.5 100,000 - 124,999 522 3.7 125,000 - 149,999 246 1.8 150,000 - 199,999 147 1 200,000+ 105 .7 TOTALS 13,930 100 Source. 2000 Census Of the total population, 4,017 are below the age of five, while 5,685 are over the age of 65. The majority of the City's population is between the ages of 25 - 54, which Is 43.6% of the total population. The age of the population is as follows: 2005-2010 Consolidated Plan, City of Rosemead 11 • • Table 4 Age Age # of Persons % of Persons Under 5 4,017 7.5 5 -9 4,359 8.1 10 - 14 3,950 7.4 15 - 19 3,954 7.4 20 - 24 4,041 7.6 25 - 34 8,740 16.3 35 - 44 8,212 15.3 45 - 54 6,417 12 55 - 59 2,184 4.1 60 - 64 1,946 3.6 65 - 74 3,245 6.1 75 - 84 1,809 3.4 85+ 631 1.2 TOTALS 53,505 100 Of the City's population, 26.8% of those between the ages of 21 - 64 are disabled and 21.4% of all individuals in the City live below the poverty line compared with the national average of 12.4%. 54% of residents are foreign born and 78.3% of all residents over the age of 5 speak a language other than English at home. Household Size As reported in last year's Plan, in 1980, there was an average of 3.19 persons per household. In 1990, that figure had risen to 3.72 persons per household. In 2000, the figure had risen to 3.80 per household. In comparison with the Los Angeles County household size of 2.98, average household size in Rosemead is larger. Household Income The major factor that constrains the ability of households to obtain adequate housing is income. The 1990 Census reported that median income in the City was $29,970, which was 14% lower than that for the County as a whole. In 2000, the median income had risen to $36,181, which is also 14% lower than Los Angeles County. This difference in income is reflective of higher residential costs in other areas of the County, which has historically attracted a more affluent population. Characteristics of the Housing Market The 2000 Census shows that there are 14,345 units, making Rosemead a medium- sized community. During the 1990's. Rosemead grew at a slightly slower rate (1.5%) than other San Gabriel cities, including Alhambra, which grew by 1.7% and Monterey 2005-2010 Consolidated Plan. City of Rosemead 12 • • Park, which grew by 1.8%. The County as a whole experienced a growth rate over twice that of Rosemead's during the 1990's. The City of Rosemead is a primarily built-out community comprised mainly of single family homes. Most of these homes were built prior to 1980. According to the 2000 Census, the age of the City's housing stock is as follows: Table 5 Year Structure Built Year # Built % Built 1999-2000 62 .1 1995-1998 209 1.5 1990-1994 533 3.7 1980-1989 1,469 10.4 1970-1979 1,818 12.7 1960-1969 2,758 19.4 1940-1959 5,823 40.7 1939 or earlier 1,642 11.5 TOTALS 14,314 100 Source 2000 Census Housing Analysis An analysis of households with any type of housing problem, including affordability appears on the next pages. These tables are known as the CHAS dataset and represent housing issues based on 2000 census data as compiled by HUD. For the Housing Problems Output table, the following definitions apply: ■ Any housing problem: cost burden greater than 30% of income and/or overcrowding and/or without complete kitchen or plumbing facilities ■ Other housing problem: overcrowding and/or without complete kitchen or plumbing facilities For the Housing Affordability table, the following definitions apply (all values based on 2000 Census): ■ Rent 0-30% - These are units with current gross rents (rent and utilities) that are affordable to households with incomes at or below 30% of HUD Area Median Family Income as of 2000. Affordable is defined as gross rent less than or equal to 30% of a household's gross income. 2005-2010 Consolidated Plan, City of Rosemead 13 0 0 ■ Rent 30-50% - These are units with current gross rents that are affordable to households with incomes greater than 30% and less than or equal to 50% of HUD's Area Median Family Income. • Rent 50-80% - These are units with current gross rents that are affordable to households with incomes greater than 50% and less than or equal to 80% of HUD's Area Median Family Income. • Rent greater than 80% - These are units with current gross rents that are affordable to households with incomes above 80% of HUD Area Median Family Income. ■ Value 0-50% - These are homes with current (2000) values affordable to households with incomes at or below 50% of HUD Area Median Family Income. Affordable is defined as annual owner costs less than or equal to 30% of annual gross income. Annual owner costs are estimated assuming the cost of purchasing a home at the time of the Census based on the reported value of the home. Assuming a 7.9% interest rate and national averages for annual utility costs, taxes and hazard and mortgage insurance, multiplying income times 2.9 represents the value of a home a person could afford to purchase. ■ Value 50 - 80% - These are homes with current values that are affordable to households with income greater than 50% and less than or equal to 80% of HUD Area Median Family Income. 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O 0 70 L C II p C ` O M O C w a 0 O C 4 L 0 0 0 (n v a) ' C13 m a n a) - ' co a) w n a) ' m a) a - n a) M m .r d a -0 a) c d a - ° i a ° C E a C 7 7 v Y m D O o m fl Q ~ d U o 0 o ° N d U o m w o L) m > o -0 ~ o N ~k o 0 0 M 0 0 0 ~ ~ ~ r a) E a) O O _T U c a a) 0 cn c 0 U O 0 N O O N • Affordability • State and Federal standards for housing overpayment are based on a traditional income-to-housing cost ratio of between 30% and 40% of income. Households paying greater than this amount have less income left over for other necessities such as food, clothing, utilities and health care. It is recognized, however, that upper income households are generally capable of paying a larger proportion of their income for housing and, therefore, estimates of housing overpayment generally focus on lower income groups. The Census definition of a large family is one with five or more members. The 2000 Census indicated that almost 32.5% of the City's households have five or more members and the majority of these were in family units. This translates into 4,522 households. The low income, large household present special problems because of the average size of units in the City and the potential for disparity between household income and housing cost. Large households with children may have an even more difficult time finding housing as rental housing often may have only one-to-two bedrooms. The 1990 Census stated that 4,592 persons, or approximately 8.9% of the City's population was 65 years of age or older. The 2000 Census shows that 10.6% of the population is now 65 years of age or older. The proportion of elderly residents was anticipated to continue to increase as persons between age 35 and 64 continued to grow older. Escalating housing costs, particularly in the rental market, severely impact housing affordability for the elderly, who are usually on fixed incomes. In the 2000 Census, there were 292 elderly householders whose income fell below the poverty level in Rosemead. Overall, as stated before, 13,033 individuals of any age fell below the poverty line in 2000. The cost of housing determines whether or not a household will be able to obtain an adequately sized unit in good condition in the area in which they wish to locate. In 1990, the median home value in Rosemead was $193,000, which was 22% below that for the Countywide median value. In 1999, the median value in Rosemead had dropped to $159,000. In 2000, the median home price had risen to $182,200, which is 13% below the County median. The 2000 median home price represents a 14.6% increase over 1999 prices, but is 5.6% lower than 1990 prices. In 2004, the median house price, as of April 2004 was $325,000, which is an increase of 179% over 2000 prices, while the 2005 median as of March 2005 was $382,000. Of total units, 51.9% of all units are owner-occupied, while 48.1% of all units are renter occupied. The national average for home ownership was 66.2% in 2000. 2005-2010 Consolidated Plan, City of Rosemead 17 Barriers to Affordable Housing One concern in developing housing program strategies is the potential and actual constraints on housing development and maintenance. This section analyzes those constraints. • Local Market Rate Housing Costs: The market rate homeownership costs of most units are prohibitive to those seeking to purchase without some sort of subsidy. • Cost of Land and Construction: The cost of land continues to rise in the City, as it has in the rest of California. Land costs in Southern California are among the highest land costs in the United States. The high cost of land may also inhibit the maintenance of existing units, because it may become more cost effective over time to demolish an existing facility and rebuild than to maintain or improve the existing structure. Land costs make new construction of units affordable to lower income households virtually impossible without subsidy and makes moderate income housing difficult to develop as well. Disproportionate Need and Underserved Populations As can be seen from the tables above, 82.2% of all households below 30% of median income, 86.1% of all households below 50% of median and 74.8% of all households below 80% of median income reported some housing problem. This includes both renters and owners. In terms of concentration of low income individuals and households, the majority of the City's low income block groups are in the southern portion of the City below the Interstate 10. There are three (3) low income block groups above the interstate and there are fourteen (14) low income block groups below the Interstate. Overall, the City is 50.76% low-to-moderate income. Overall, the City is a majority minority community. The City has adopted the Zapopan Park Target Area, along with its other Code Enforcement Target Areas, as a way to partner with agencies and departments for integrated neighborhood improvement. This Target Area is south of the interstate. The City anticipates completing improvements in the Target Area within the next one to two years. The City will look at creating an additional Target Area within the neighborhoods south of Interstate 10 within the next one to two years for additional integrated development. Housing Needs and Priorities The City recognizes the ongoing need for affordable and safe housing. Because of this, the City has undertaken, or is in the process of undertaking, various activities designed to improve the overall affordability of housing opportunities in the City. They are as follows: 2005-2010 Consolidated Plan, City of Rosemead 18 ! • ■ Continue offering loans under the City's Mortgage Assistance Program. Conduct ongoing analysis of amounts available under the second trust deed to assure that assistance remains viable. (HOME) • Expand affordable housing in the region by creating partnerships with for-profit and non-profit developers using City's HOME Housing Program funds. (HOME) ■ Continue the City's Housing Rehabilitation Program providing grants, rebates, loans to qualified low- to moderate-income single-family residences. (CDBG) ■ Continue the City's Code Enforcement activities in low income target areas in order to maintain the viability of housing stock within the community. (CDBG) ■ Continue support for the County Housing Authority as the City's largest provider of affordable housing, principally Section 8 assistance to qualified extremely low- and very low-income residents. (Housing Authority) Strategic Plan High Priority Housing Needs STRATEGY: Preserve the City's existing affordable housing stock through rehabilitation using CDBG funds. Goal: The goal is to serve 100 households during the 2005-2010 planning period. Proposed Outcome: Improve existing housing stock. Improve living conditions for 100% of participants receiving assistance. STRATEGY: Assist low-to-moderate income households secure affordable housing, whether rental or home ownership, through a variety of programs. The Census numbers indicate that many low-to-moderate income households are overpaying for housing and that there is a need for additional affordable units. In order to help meet this demand, the City will continue to: • Support the Housing Authority's Section 8 Voucher Housing programs. Goal: To be at an average of 98% leased over the life of the Plan. Proposed outcome: 1 additional affordable housing option for low-income households. • Provide homeownership assistance through HOME funds. Goal: The goal is to create 10 new homebuyers during the planning period. Proposed outcome: increase the number of low-to- moderate income homeowners within the City. 2005-2010 Consolidated Plan, City of Rosemead 19 0 0 • Provide development assistance through creation of development fund. Goal: Operate a development fund using HOME dollars and make 2 awards during the life of the Plan. Proposed Outcome: Create at least one affordable housing project during the next 5 years that will increase the overall supply of affordable housing in the region. Lead Based Paint Since 1978, paint has been allowed to contain no more than a maximum of 600 parts per million of lead. More than three-quarters of pre-1978 homes nationwide contain lead-based paint, according to the federal government. The majority, or 96% of homes in the City were constructed prior to 1979 and have the possibility of containing lead- based paint. Lead Based Paint Strategy Recognizing the danger of lead-based paint, on September 15, 2000, new lead-based paint regulations took effect. The City revised its Housing Rehabilitation Program Guidelines ("Guidelines") to meet the new lead regulations and to facilitate the evaluation, noticing and processing of assistance for properties found to have lead hazards. As a result of the revised Guidelines, the City moved forward with a contract with a qualified Risk Assessor/Inspector to perform a combination of limited paint testing, risk assessments and clearance testing for the CDBG funded Residential Rehabilitation Program. The City also created a lead-remediation grant specifically designed to address lead-based paint in units that test positive. The City will continue to fulfill the requirements of HUD's new lead regulations and the more restrictive California requirements under the State's Title 17 on any housing program or project assisted with CDBG and HOME funds. As part of the Annual Funding Plan, the City plans the following actions to continue to implement the regulations: ■ Continue its contractual relationship for a set period of time with a HUD certified lead contractor to perform a combination of limited lead testing, risk assessment and clearance testing. ■ Continue to attend HUD-sponsored training in lead-based paint. ■ Continue to coordinate with the Childhood Lead Poisoning Prevention Program and with County Public Health on an as needed basis for information on the annual number of child lead cases detected and local providers of the Child Health Disability Prevention Program which tests children between ages 1 and 2 for elevated blood lead levels. 2005-2010 Consolidated Plan, City of Rosemead 20 • ■ Continue to test units built prior to 1978 for the presence of lead-based paint. Provide grants to Housing Rehabilitation Program and Homebuyer Assistance Program applicants for lead testing, risk assessment and clearance testing. Public Housing Needs and Strategy There is no public housing in the City of Rosemead. This section does not apply to the City. Homelessness Continuum of Care The City is a member of the San Gabriel Valley Homeless Coalition and participates in the Countywide Continuum of Care through the Los Angeles Homeless Services Authority for HUD SuperNOFA funds. In this capacity, City staff attends meetings of social service providers, supplies information to the umbrella organization responsible for coordinating the continuum, and receives information from them. In addition, the City works with public service agencies and others to identify services and service gaps in the community to ensure that citizens looking for services are referred to agencies that can be of the most assistance to them. In 2005, Community Development, in conjunction with Code Enforcement and the Los Angeles County Sheriffs Department, undertook a homeless count night. Potential sites were identified in advance as locations for the homeless. A homeless count was conducted at these sites, along with follow-up sites during the evening hours. As a result, staff encountered seven (7) persons at twenty sites. All of these persons stated that they were homeless. Of these, three (3) were female and four (4) were male. Four (4) identified themselves as White, while three (3) identified themselves as Hispanic. They ranged in age from 32 to 63 years of age. The majority reported that they had alcohol or substance abuse issues, while three (3) were disabled. Homelessness ranged from 1 week after leaving a correctional facility to ten years or more. All respondents received information regarding services, although the majority stated they didn't know if they would follow up. This is the City's third homeless county since 1999. In the first count, eight (8) persons were found, of which four (4) stated they were homeless. Three (3) had alcohol/substance abuse problems and two (2) were mentally disabled. All declined services. In addition, in 1999, the Urban Research Group conducted a survey of homelessness in the San Gabriel Valley. It identified 18 persons who had requested services. Nine (9) of those persons lacked a permanent address. The homeless population was estimated at between 13 and 16. This represented a decline from the 1990 Census in which 20 individuals and one (1) family were identified as homeless. 2005-2010 Consolidated Plan, City of Rosemead 21 i • In the follow up count of 2002, staff found four (4) persons, two (2) of whom claimed to be homeless and unsheltered, one (1) who was unresponsive, but appeared to be unsheltered and one (1) whom was intoxicated and sleeping. Based on the three (3) counts, homelessness within the City has remained low and fairly constant since a decline after the 1990 Census. It has ranged from approximately 16 to a low of four (4). Gaps Analysis The following table represents the San Gabriel Valley's access to services compared with numbers of homeless and need on a regional basis. Although homelessness within the City of Rosemead is low, it is much higher in Sub Planning Area (SPA 3) of the Los Angeles Homeless Services Authority (LAHSA), which is the San Gabriel Valley. Most of this homelessness is concentrated in the eastern portion of the Valley. Homeless rates among west valley cities, where Rosemead is located, is generally low. Within the City and western region, there is a priority need for substance abuse and mental health services, as well as for transitional housing. Table 1A Homeless and Special Needs Population - SPA 3 Example Emergency Shelter 115 89 26 M Emergency Shelter 250 110 140 H Beds / Units Transitional Housing 400 107 293 M Permanent Housing 450 15 435 H Total 1100 232 848 Job Training 550 200 350 H Case Management 825 400 425 H Estimated Substance Abuse Treatment 550 200 350 H Supportive Mental Health Care 450 100 350 H Services Housing Placement 825 400 425 H Slots Life Skills Training 825 400 425 M Other Chronic Substance Abusers 550 200 350 H Seriously Mentally III 275 100 175 H Estimated Dually - Diagnosed 175 100 75 M Sub- Veterans 200 25 175 M populations Persons with HIV/AIDS 35 25 10 M Victims of Domestic Violence 150 50 100 M -q 25 50 H - I1 2005-2010 Consolidated Plan, City of Rosemead 22 0 • Persons in Families with Children Example Emergency Shelter 115 89 26 M Ernergency Shelter 100 38 62 H Beds / Units itional Housing 200 181 19 M p anent Housing 200 54 146 H 500 273 227 Job Training 150 75 75 H Case Management 150 75 75 M Estimated Substance Abuse Treatment 100 75 25 M Supportive Mental Health Care 50 50 0 M Services Housing Placement 150 75 75 H Slots Life Skills Training 150 75 75 H Other Education support for youth 300 200 100 H Chronic Substance Abusers (parents) 65 25 40 H Seriously Mentally III 10 10 0 M Estimated Dually - Diagnosed 10 10 0 M Sub- Veterans (parents) 25 10 15 M Populations Persons with HIV/AIDS 10 10 0 M Victims of Domestic Violence (families) 175 50 125 H Youth 300 200 100 H Certifications of Consistency with the Consolidated Plan The City's guidelines regarding the Certifications of Consistency with the Consolidated Plan are in place to ensure that social service providers work towards regional approaches to homelessness. The guidelines are as follows: 1. The population, subpopulation, and/or special needs population to be served. 2. A project description, including the services to be provided, the number of clients served, the operating pro-forma for the project, the location of the project, the applicant's ability to obtain site control, and the characteristics of surrounding land uses. 3. Geographic distribution of the proposed project near social services, public facilities and public transportation. 4. The coordination of the project with existing service providers, programs and funding and the relationship of the project to regional solutions to serve targeted populations. 5. Projects that support progress of the client population towards self-sufficiency and placement in transitional housing and support services provided by other non-profit service providers and Los Angeles County. Projects that enable homelessness are not consistent with the continuum of care or with the City's Consolidated Plan. For new projects within the City, the governing body will be required to provide formal review and action by the prior issuance of a certification of consistency. No new project applications were submitted this year. 2005-2010 Consolidated Plan, City of Rosemead 23 i • Priorities to Address Homelessness The following activities will be undertaken to continue the City's commitment to address priority needs of homeless individuals and families: ■ Work within the Continuum towards regional approaches to homelessness. ■ Work with the San Gabriel Valley Homeless Coalition and social service providers towards regional approaches to homelessness. ■ Work with the identified Community Housing Development Organizations (CHDO) in the County. ■ Provide a variety of affordable housing options through mortgage assistance programs, HOME Housing and Redevelopment Agency programs. Provide CDBG funds for residential rehabilitation. In addition, the City will utilize the following organizations to address the needs of homeless individuals and families and other special needs groups: Assistance, General People for People. A non-profit social service which provides food and clothing to individuals and families in need, including homeless or at risk of homelessness. InfoLine. Provides information and referral services to persons, including the homeless Homeless Outreach Programs. Provides information and referral services to homeless populations. Assistance, Medical East Valley Community Health Center. Provides free immunizations, medical examinations, HIV testing and low cost health services. Shelters and Emergency Housing YWCA--Wings. Provides emergency housing for battered women and their children Salvation Army. Provides motel vouchers for emergency housing. 2005-2010 Consolidated Plan, City of Rosemead 24 • • Homeless Strategic Plan High Priority Homeless Needs STRATEGY: Continue to provide assistance to those at risk of homelessness. The City will continue to: • Participate in the Continuum of Care. Goal: To improve coordination and eliminate gaps in institutional structure. Proposed outcome: Improved social service delivery. • Provide funding to organizations that assist homeless and provide homeless prevention services. Goal: To provide services to at-risk persons and households. Proposed Outcome: Assist households in homeless prevention. • Conduct unsheltered homeless count. Goal: To provide at least 2 counts of unsheltered homeless during the planning period. Proposed Outcome: Better understanding of unsheltered population and referral to services for 100% of identified unsheltered homeless during counts. Special Needs Populations In addition to traditional homeless populations, there are additional populations that have special needs, which may lead to homelessness if not addressed. The special needs populations most in need of services in order to maintain their independence include seniors, the disabled and homeless persons, especially those with drug/alcohol addiction and mental health issues. Within these groups, there are no geographical areas that have more priority than another for provision of services. In terms of underserved needs, the City has identified youth and teenagers, along with families, as special underserved populations needing assistance. The City supports these populations through its 15% public service set-aside. Within this amount of money, the highest priorities continue to be youth programs, programs for low income families in need and services to seniors. In addition, the City remains committed to providing accessibility to the disabled through an active campaign to comply with the Americans with Disabilities Act (ADA) requirements. To date, the City is retrofitting its parks and installing curb cuts and ramps in its public right of ways. See Table 1B below for HUD priorities (dollars to address unmet needs are approximate and are for a five year period): 2005-2010 Consolidated Plan, City of Rosemead 25 • • TABLE 1B SPECIAL NEEDS SUBPOPULATIONS Priority Need Level High, Medium, Low, No Such Need Dollars to Address Unmet Need Elderly H 400.000 Frail Elderly H 100.000 Severe Mental Illness L 0 Developmentally Disabled L 0 Physically Disabled H 500,000 Persons w/ Alcohol/Other Drug Addictions M 0 (need through homeless programs Persons w/HIV/AIDS L 0 Other - Youth/Families H 125.000 TOTAL 1,125,000 Community Development Community Development Needs and Bases for Assigning Priorities The City has identified many areas in low-income neighborhoods that need improvement in infrastructure, roads, sidewalks and streetlights, as well as public safety. These areas have been identified through a process involving local government, as part of the Capital Improvement Plan, as well as ongoing significant local input through the Neighborhood Watch process. As part of this plan, the City will continue its ADA compliance activities in accordance with its ADA plan. The table on the following page outlines the City's 5 year Community Needs. Needs do not represent all needs in the community, nor all funding sources, but do represent the needs which are determined to be addressed during the 5-year period. Obstacles to Meeting Needs Obstacles to meeting needs include the following: • Lack of available land for construction • Lack of financial resources to achieve goals 2005-2010 Consolidated Plan, City of Rosemead 26 • • HUD Table A: Community Development Needs - 5-Year Needs Estimation Community Development Needs Type Priority Need Units Estimated Funding Public Facilities Senior Centers Youth Centers Neighborhood Facilities Child Care Centers Parks/Recreation Facilities Health Facilities Parking Facilities Other Public Facilities: Police Substation H 1 500,000 Infrastructure Improvements Solid Waste Disposal Flood Drainage Water Street H 5 2,000,000 Sidewalk H 1 500.000 Sewer Asbestos Other: ADA H 3 800,000 Other: Streetlights H 1 400,000 Other: Code Enforcement H 5 1,000,000 Public Services Senior Services H 1 500,000 Handicapped Services Youth Services H 5 250,000 Transportation Services Substance Abuse Services Employment Training Crime Awareness Child Care Services Health Services OthecBattered Women H 5 50,000 Service/Admin. Fair Housing Counseling H 5 50,000 Tenant/Landlord Counseling H 5 50,000 Other Needs Accessibility H 2 1.000.000 Residential Historic Preservation Non-Residential Historic Preservation Economic Development Needs H 5 500,000 Repayment Section 108 Loans Planning and Admin. Planning and Administration H 5 910,000 TOTAL ESTIMATED DOLLARS NEEDED 7,610,000 2005-2010 Consolidated Plan, City of Rosemead 27 0 • Non-Homeless Special Needs and Priorities Public Services As seen above in Table 1 B, the City has an ongoing need for senior and youth services, including senior nutrition, social/recreational activities, counseling, other youth activities and homeless prevention activities. ADA Improvements The City remains committed to providing accessibility to the disabled through an active campaign to comply with ADA requirements. A requirement of the federal Fair Housing Act and the California Fair Employment and Housing Act is to impose an affirmative duty on local governments to make reasonable accommodations in their zoning and other land use regulations when such accommodations may be necessary to afford disabled persons an equal opportunity to use and enjoy a dwelling. The City will continue the Housing Rehabilitation program to provide rebates, grants and loans for accessibility improvements. The City will also continue to construct ADA improvements in infrastructure in order to assist with citywide mobility for the disabled. Community Development Strategic Plan STRATEGY: To improve infrastructure, especially south of Interstate 10. Goal: to complete five street, one streetlight and one sidewalk projects over the next five years. Proposed Outcome: Increase in life of pavement and sidewalks of 10 and 20 years respectively. Increased access and improved infrastructure to low-mod neighborhood. STRATEGY: To improve neighborhoods in an integrated manner south of Interstate 10. Goal: to complete activities in the Zapopan Park Target Area in the next two (2) years. To implement one new Target Area south of the 10 within the next two (2) years. Proposed Outcome: Improvement in 20% of the housing stock, improved access to services and integrated public works strategy to improve neighborhood conditions and reduce violent crime (see infrastructure, code enforcement and housing strategies for specific projects). STRATEGY: To improve ADA accessibility. Goal: to complete three ADA projects over the next five years. Projected Outcome: Improved accessibility for the 26.9% of the City's disabled population between 21 and 64 and for the 44.7% of the population over 65 who are disabled. STRATEGY: To improve access to services and educational opportunities for low-to- moderate income persons. Goal: to fund social service organizations to provide services to battered women, to youth and to seniors. Projected Outcome: Improved nutrition, improved access to alternatives for youth to gang activities and homeless prevention for battered women, youth and others. 2005-2010 Consolidated Plan. City of Rosemead 28 0 • STRATEGY: To provide Code Enforcement activities in identified services areas that are partnered with the City's rehabilitation program and other projects. Includes proactive code enforcement in identified neighborhood improvement target areas. Goal:.1,000 cases over 5 years. Projected Outcome: Improved neighborhood conditions in identified areas south of Interstate 10. Anti-Poverty Strategy The following are often cited as major factors that work to create poverty: • Lack of education • Lack of marketable job skills • General unemployment • Low wages • Lack of affordable child care • Substance abuse • Lack of reliable transportation The City has established goals and policies designed to improve the local economy and reduce the level of poverty within the community. This strategy is outlined in the following sections. Housing and Community Development • The City will continue to partner with the Los Angeles County Housing Authority for rental subsidy payments through the Section 8 program. • The City will continue public services, including homeless prevention and counseling programs to assist households and individuals with improved living conditions. reduced need for substance abuse, after-school tutoring programs and access to services. • The City will continue to home ownership programs to help move families into ownership units. • The City will continue to support local and regional transportation through its Dial- A-Ride program and RTD bus access. Economic Development The City has partnered and supported activities that promote economic development including the following programs: 2005-2010 Consolidated Plan. City of Rosemead 29 • • • CDBG funded Commercial Rehabilitation Program and Economic Development Loan Program • RDA funded Commercial Rehabilitation Program Low Income Housing Tax Credit Coordination Currently, the City uses Redevelopment Agency Low - Moderate Income housing funds, HOME and other programs for affordable housing development.. The City has participated in one tax credit development project. The City has a HOME funded development fund. As part of that, there will be additional opportunities to use the Low Income Housing Tax Credit. In order to coordinate these tax credits, the City's Grants Coordinator will oversee the Housing Development Fund. As such, the Coordinator will work with the agency's pro forma, serve as part of the team developing the tax credit financing and will calculate the financing gap, along with the maximum and minimum subsidies. This will ensure that the City's HOME contribution will meet HOME requirements for the LIHTC program. Fair Housing Introduction As a recipient of CDBG funds, the City of Rosemead is required to develop a fair housing program whose specific actions and procedures which will have an impact on preventing, reducing or eliminating housing discrimination and other barriers to equal housing choice based on race, color, religion, sex, national origin, ancestry, familial status or physical or mental handicap. Definition of Fair Housing Fair Housing is defined as "a condition in which individuals of similar income levels in the same housing market area have a like range of choice available to them regardless of race, marital status, color, religion, ancestry, sex, sexual orientation, national origin, familial status, age, physical or mental disability, arbitrary or any other category which may be defined by law now or in the future." Impediments to Fair Housing Choice Impediments are defined as: Any action, omission, or decision taken because of race, color, religion, sex, disability, familial status or national origin which restrict housing choices or the availability of housing choices, or Any action, omission, or decision which have the effect of restricting housing choices or the availability of housing choices on the basis of race, color, religion, sex, disability, familial status, or national origin. 2005-2010 Consolidated Plan, City of Rosemead 30 Based on the conclusions of the Analysis of Impediments (AI), if the CDBG grantee takes lawful steps to eliminate identified impediments to fair housing choice within its jurisdiction, the grantee will be determined to have taken affirmative actions to further fair housing choice. Results of Analysis of Impediments (AI) As part of the Five Year Plan process, the City is conducting a follow up to its 2000 Impediment Study. The City has issued a Request for Proposals (RFP) and has selected Housing Rights Center as the agency to conduct its Al. Once the 2005 Al is completed, the results will be included in the Consolidated Plan. In the 2000 Al, the following issues were found: Rental Housing Results of the analysis show that discrimination does exist and consists primarily of Asian landlords discriminating against other ethnic and racial groups, especially Caucasians and Hispanics. Home Ownership The results of the analysis of home mortgage data shows that there is not enough information to draw a conclusion as to whether or not redlining exists in Rosemead, although the data does show that demand for homes was concentrated in higher- minority areas of Rosemead. Also, unlike the balance of the County, there are significant numbers of minorities in the applicant pool from Asian American and Hispanic groups. African American and Caucasian applicants are a very small percentage of all loan applications in the City. Data does show, however, that Asian Americans and Caucasians have higher levels of home purchases and refinancing rates than Hispanics, when there is a sample large enough on which to make a comparison. Activities undertaken To date, the City has undertaken the following activities in order to promote fair housing: The City's rehabilitation contracts and covenants were revised to enforce understanding of and commitment to fair housing law; The City continued its regular fair housing audits of the City and has conducted a special study of multi-family housing to help create new strategies where necessary to increase fair housing opportunity; The City continues to provide landlord/tenant information and outreach; 2005-2010 Consolidated Plan, City of Rosemead 31 0 0 The City has continued to assist state and federal housing enforcement agencies by investigating and testing fair housing complaints. The City created a First Time Home Buyer program for low-to-moderate income households. Fair Housing Strategy The City will continue to contract with the Southern California Housing Rights Center (HRC), or similar agencies, for fair housing services. services to promote fair housing, including counseling instances of housing discrimination, public education community groups, and housing discrimination prevention will continue to expand outreach and education activities estate agents, landlords and property managers. The towards addressing the need for more affordable housing. Other Requirements CDBG: Leveraging and Program Income The HRC offers a variety of and investigative services for and outreach sessions for n program. In addition, the City , including information to real City will continue its efforts The City uses a variety of mechanisms to leverage additional resources. In residential rehabilitation, some products are offered as a loan where CDBG funds are repaid. In street reconstruction, other funds besides CDBG are used to fulfill the requirements of the City's pavement management program, such as: Gas Tax and Redevelopment Agency monies. In public services, funds are either received as part of the program operation or CDBG funds are used with other forms of funding. In commercial rehabilitation and economic development, funds are leveraged through loans that must be repaid. In recreation facilities and other construction, the City leverages funds from a variety of sources. Transportation, which is identified in the Consolidated Plan as a priority item, receives no CDBG funds, and is funded entirely from other sources. Surplus from Urban Renewal Grants, Grant funds returned to line of credit, income from float-funded activities The City does not have Urban Renewal Grants, no funds have been returned to the line of credit and there are currently no float-funded activities. HOME: Leveraging and Match The City is a 100% match reduction community. 2005-2010 Consolidated Plan, City of Rosemead 32 • • Other forms of investment The City of Rosemead does not use atypical loans or grant instruments of non- conforming loan guarantees. HOME Recapture Provisions in First Time Home Buyer Program (MAP) HOME regulation 24 CFR 92.254, Section (B)(ii) requires that the participating jurisdiction "recoups all or a portion of the HOME assistance to the home buyers if the housing does not continue to be the principal residence of the family for the duration of the period of affordability." In accordance with this requirement, the City of Rosemead requires the repayment of HOME funds during the affordability period, along with a declining interest rate penalty. At the end of the mortgage period, only HOME funds invested must be repaid. Affirmative Marketing For rental projects consisting of five (5) or more HOME assisted units, the City will use affirmative marketing procedures and requirements. Affirmative Marketing Plans will include the following: ■ The methods to be used to inform the public, owners and potential tenants about fair housing laws. ■ Description of the efforts that will be made to conduct affirmative market housing units assisted with HOME funds. Owners and leasing agents will place advertisement to market HOME-assisted units including local sources, public agencies and social service organizations. ■ Description of efforts to outreach persons not likely to apply for housing without special outreach. These efforts will include effort to distribute marketing materials to organizations that likely have contact with these populations. ■ Maintenance of records to documents actions taken to affirmatively market HOME-assisted units and to assess marketing effectiveness. ■ Description of corrective actions that will be taken where requirements are not met. 2005-2010 Consolidated Plan, City of Rosemead 33 • • ANNUAL ACTION PLAN: FY 2005-2006 Introduction The Annual Action Plan details the projects and programs that will be undertaken in FY 2005-2006, principally with the City's federal entitlement funds: CDBG and HOME. The Plan also outlines the goals and proposed outcomes for funded projects. This is the first of five (5) Annual Plans under the City's 2005-2010 Consolidated Plan General Geographic Areas of Jurisdiction As stated in the Strategic Plan, the City of Rosemead is located in the San Gabriel Valley in the eastern portion of Los Angeles County. Rosemead was incorporated as a City in 1959. The City enjoys good access to major transportation corridors including the Interstate 10, Interstate 605, Rosemead Boulevard, Mission Drive, Temple City Boulevard, Valley Boulevard and Walnut Grove Avenue. Rosemead is a predominantly built-out suburban community and serves as a residential suburb for surrounding employment centers, such as Los Angeles. Most of the land area has been developed as low-density housing. Basis for Allocating Investment for FY 2005-2006 In accordance with the City's Consolidated Plan, the City will allocate CDBG and HOME funds to the City's High Priority Needs. Geographic Distribution As stated in the Consolidated Plan, CDBG and HOME dollars will be spent in the areas of homeownership, housing rehabilitation and public services without regard for geographic boundaries, but focusing on low-to-moderate income households south of Interstate 10. The majority of infrastructure activities will be undertaken in low-to- moderate income areas. The City will invest in the Zapopan Target Area and will look to establish one new target area south of Interstate 10. Actions to address obstacles to meeting underserved needs Potential obstacles to meeting needs and underserved needs are as follows: • Lack of affordable land Funding constraints Potential elimination of funding for CDBG and other funding sources by the federal government in FY 2006-2007 2005-2010 Consolidated Plan, City of Rosemead 34 • C~ Actions in FY 2005-2006 will be to look for non-traditional ways to develop affordable units; to fund at least one project through the development fund; to work with government to ensure that sufficient funding exists to meet needs. Managing the Process Lead Agency As stated in the City's Consolidated Plan, CDBG and HOME functions are part of Community Development. Community Development administers the City's CDBG and HOME funds, and others such as Department of Justice and Redevelopment funds for commercial rehabilitation. Consultation The City consulted with a variety of agencies and organizations in the development of this Plan, including the following: • Internal Departments of the City • County of Los Angeles • San Gabriel Valley Homeless Coalition • Los Angeles Homeless Service Authority • Non-profit agencies • Housing Rights Center • Local cities Institutional Structure In the coming fiscal year, the City will pursue the following activities to enhance coordination and eliminate gaps in the institutional structure: ■ Attend meetings between service providers and non-profit developers and other interested parties as available. ■ Continue to participate in the Continuum of Care. ■ Continue to be a member of the San Gabriel Valley Homeless Coalition. ■ Continue to promote fair housing through the administration of fair housing services with Housing Rights of Southern California. ■ Continue to meet with interested local governments regarding regional approach 2005-2010 Consolidated Plan, City of Rosemead 35 • • to issues, including housing Citizen Participation The City's Citizen Participation process was held in conformance with its adopted Citizen Participation Plan, which was updated as part of the 2005-2010 Consolidated Plan cycle. The Plan was published for a 30-day comment period on April 26, 2005. A public hearing was held for adoption of the Plan on June 14, 2005. Regarding the Annual Action Plan, the City received no public comments: Monitoring In conformance with the City's Monitoring Plan, which is found in the City's 2005-2010 Consolidated Plan, the City will undertake the following action in FY 2005-2006: Perform monitoring of projects funded through the CDBG and HOME programs. This includes the following actions during FY 2005-2006: 1. Performance monitoring - this will include desk audit of billing and a review of reporting information, as well as one on-site visit/interview. Includes subrecipient agreement used to measure compliance. Includes inspections of HOME-funded units and collection of income information for renters in HOME units. 2. Financial monitoring - this includes costs paid on reimbursement basis. Desk audit of billing and program activity report at time of reimbursement. 3. Davis-Bacon Compliance - Includes monitoring of bid package, public bid process, a check with the State Contractors' License Board and federal Debarment system to ensure they are licensed and not debarred from federal contracts. Includes Contract to measure performance, Davis-Bacon wage rates, site visits and interviews of workers. 4. Environmental Review Compliance - Includes NEPA compliance, historic review, publication and clearance of project. Includes monitoring of all reviews. 5. Other Areas of Compliance - includes review of contractual compliance with fair housing, minority and women owned business enterprises, Section 3, affirmative marketing in HOME projects. Housing Specific Housing Objectives In Fiscal Year 2005-2006, the City will undertake the following housing programs/projects.- 2005-2010 Consolidated Plan, City of Rosemead 36 • • STRATEGY: Continue the Mortgage Assistance Program. Goal: 1 new home buyer and a review of housing prices aimed at establishing a local median home price. STRATEGY: Continue residential rehabilitation through the Housing Rehabilitation Program. Goal: 20 units through all programs. STRATEGY: Continue to provide Fair Housing. Goal: Provide funding to the HA and to Housing Rights Center to provide fair housing information and follow up STRATEGY: Provide funding to Housing Development Fund Goal: To fund one development/project in FY 2005-2006 Resources Type FEDERAL CDBG CDBG Carryover HOME Redevelopment Needs of Public Housing Amount Projects $1,320,401 See Work Plan 1,216,000 See Work Plan $546,809 See Work Plan $100,000 Commercial Rehabilitation There is no public housing in the City of Rosemead. This section does not apply to the City. Barriers to Affordable Housing Land costs, availability and land constraints continue to be the biggest barriers to affordable housing. The City will continue with its Affordable housing program and its Housing Development Fund. HOME/American Dream Down Payment Initiative (ADDI) The City does not receive ADDI funds. Leveraging and Match The City is a 100% match reduction community. Other forms of investment The City of Rosemead does not use atypical loans or grant instruments of non- conforming loan guarantees. 2005-2010 Consolidated Plan, City of Rosemead 37 • • HOME Recapture Provisions in Home Buyer Assistance Program (HEAP) As stated in the Strategic Plan, HOME regulation 24 CFR 92.254, Section (B)(ii) requires that the participating jurisdiction "recoups all or a portion of the HOME assistance to the home buyers if the housing does not continue to be the principal residence of the family for the duration of the period of affordability." In accordance with this requirement, the City of Rosemead has adopted the policy of repayment of HOME funds lent. If the loan is refinanced or home sold during the affordability period, the City also charges an interest rate penalty that declines over the life of the loan to the end of the affordability period. The principal of HOME funds are always repaid. Affirmative Marketing For rental projects consisting of five (5) or more HOME assisted units, the City will use affirmative marketing procedures and requirements. Affirmative Marketing Plans will include the following: ■ The methods to be used to inform the public, owners and potential tenants about fair housing laws. ■ Description of the efforts that will be made to conduct affirmative market housing units assisted with HOME funds. Owners and leasing agents will place advertisement to market HOME-assisted units including local sources, public agencies and social service organizations. ■ Description of efforts to outreach persons not likely to apply for housing without special outreach. These efforts will include effort to distribute marketing materials to organizations that likely have contact with these populations. ■ Maintenance of records to documents actions taken to affirmatively market HOME-assisted units and to assess marketing effectiveness. ■ Description of corrective actions that will be taken where requirements are not met. Homeless Prevention and Assistance Actions to support the Consolidated Plan include: STRATEGY: Continue to be a member of the Homeless Continuum. Goal: eliminate gaps in the system. STRATEGY: Provide funding to People for People for homeless assistance and prevention activities. Goal: Assist over 100 persons. Resources CDBG funds will be used. See Work Plan 2005-2010 Consolidated Plan, City of Rosemead 38 0 • Community Development Community Development Activities In accordance with the Community Development Needs Table in the Consolidated Plan, the City plans to undertake the following in FY 2005-2006: STRATEGY: Provide funding for Alley Paving. Goal: complete the paving project. STRATEGY: Provide funding for Pedestrian ADA. Goal: Complete the installation of ADA accessible crosswalk devices STRATEGY: Provide funding for Street Sign Graffiti Prevention. Goal: complete project in FY 2005-2006 STRATEGY: Provide funding for Virginia Street. Goal: Complete Virginia Street reconstruction in FY 2005-2006. STRATEGY: Provide funding for Zapopan Police Substation (Rosemead Public Safety Center). Goal: Complete rehabilitation of site in FY 2005-2006 STRATEGY: Provide funding for Consolidated Code Enforcement Activities. Goal: 200 cases in FY 2005-2006. Resources $2,074,261 in CDBG funds for infrastructure, Code Enforcement, Rehabilitation and Economic Development (includes carryover funds). Anti-Poverty Strategy STRATEGY: The City's proposed economic development - job creation and retention activities for fiscal year 2005-2006 include the following: • CDBG-funded loans and rebates to existing, start-up businesses, and commercial building owners. Owners must demonstrate job retention, or job creation and expansion. • Redevelopment Commercial Rehabilitation to existing businesses and commercial building owners in RDA areas. STRATEGY: Funding for business assistance, including the Rebate and Loan program. Goal: to provide assistance to a minimum of 2 businesses in FY 2005-2006. 2005-2010 Consolidated Plan. City of Rosemead 39 CDBG and HOME Work Plan and Budget FY 2005-2006 CDBG Administration 195,000 Fair Housing 25,000 Aerial Photos 20,000 Consolidated Code Enforcement 230,000 Residential Rehabilitation 300,000 Rehabilitation Activities 67,328 Lead/Asbestos Testing 20,000 Lead and Asbestos Remediation 100,000 Commercial Rehabilitation 100,000 Alley Paving 75,000 Pedestrian ADA 289,013 San Gabriel Boulevard ADA 27,000 Virginia Street Reconstruction 475,000 Zapopan Police Substation 340,000 Family Counseling 40,000 People for People 27,606 Rosemead Boys and Girls Club 24,600 Senior Nutrition 85,220 YWCA Wings 8,500 HOME 2005-2010 Consolidated Plan, City of Rosemead 41